Buy with Mike

1. How much money do I actually need to buy a home in Colorado?

 

It depends on your loan type, but generally you’ll need:

• Down payment (can be as low as 3–5% for many loan programs)

• Earnest money (often 1–3% of purchase price; credited toward your closing costs)

• Closing costs (typically 2–4% of purchase price)

There are also Colorado first-time buyer assistance programs that may help with down payment or closing costs. I can connect you with lenders who specialize in these.

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2. What credit score do I need?

 

Most conventional loans require a score around 620 or higher, though better rates are available with stronger credit.

If your credit isn’t where you’d like it to be, that doesn’t mean you can’t buy — it just means we build a plan first.

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3. Do I have to pay my Realtor as a buyer?

 

In Colorado, buyer representation compensation is negotiable and disclosed clearly in writing.

Traditionally, sellers have offered compensation to buyer agents through the MLS. However, due to recent industry changes, how compensation is structured can vary.

Here’s what matters:

• You will know exactly how representation is handled before we begin.

• Everything is fully transparent.

• My job is to protect your interests — period.

We’ll review this clearly in your Buyer Agency Agreement.

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4. What is earnest money? Do I lose it if something goes wrong?

 

Earnest money shows the seller you’re serious.

In Colorado:

• It is typically due within a few days after contract acceptance.

• It is held by a title company.

• It is refundable during your inspection, loan, and appraisal objection deadlines — if terminated properly and on time.

Deadlines matter. I track them carefully to protect you.

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5. What if the home inspection finds problems?

 

Almost every home inspection finds something.

In Colorado, you have an Inspection Objection Deadline, which allows you to:

• Request repairs

• Ask for concessions

• Renegotiate

• Or terminate the contract

The key is knowing what’s normal and what’s serious. I help you make that distinction calmly and strategically.

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6. Why is radon testing common in Colorado?

 

Colorado has naturally high radon levels in many areas.

Radon is an odorless gas that can pose health risks over long exposure. That’s why most buyers in Colorado conduct a radon test during inspection.

If levels are high, mitigation systems are common and effective — and negotiable.

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7. How long does the buying process take?

 

Typical timeline:

• 1–4 weeks: Home search

• 30–45 days: Under contract to closing

If you’re financing, lenders usually need about 30 days.

Cash purchases can close faster.

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8. What is an appraisal gap?

 

In competitive markets, homes sometimes appraise for less than the contract price.

An appraisal gap means the buyer agrees to cover a certain amount above the appraised value.

This is a strategy — not a requirement — and we’ll only use it if it makes sense for you.

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9. What are closing costs?

 

Closing costs may include:

• Loan origination fees

• Appraisal fee

• Title insurance

• Recording fees

• Prepaid taxes and insurance

Your lender provides a Loan Estimate early in the process so you’re not surprised.

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10. Should I wait for the market to get better?

 

Trying to time the market perfectly is nearly impossible.

Instead, we focus on:

• Whether the payment works for you

• Whether the home fits your life

• Whether the long-term investment makes sense

The right time is when you’re financially and personally ready — not when headlines say so.

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11. Is buying better than renting in Colorado?

 

It depends on your goals.

Owning allows you to:

• Build equity

• Stabilize your housing costs

• Gain potential tax advantages

• Participate in long-term appreciation

But if you plan to move within a year or two, renting may make more sense.

We look at your situation, not just general advice.

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12. What makes working with Mike different?

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• You’re treated like family.

• Deadlines are handled carefully.

• Negotiations are strategic, not emotional.

• The process is professional and drama-free.

And when we’re done, you’ll feel confident — not confused.

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Still Have Questions?

 

Buying your first home can feel overwhelming. It doesn’t have to be.

Let’s have a conversation. No pressure. Just clarity.